Section Article

Digital Payment Systems and Consumer Behaviour
Author(s): Mr, Md Adil

Abstract
This paper explores the impact of digital payment systems on consumer behaviour in India particularly between 2016 and 2025 a period marked by demonetization rapid adoption of Unified Payments Interface (UPI) and the expansion of mobile wallets QR codes and contactless transactions. The rise of digital payment systems has not only transformed consumer purchasing patterns but also redefined trust convenience and financial inclusion. Consumers in urban India increasingly prefer cashless transactions due to speed and security while rural adoption is growing with government incentives smartphone penetration and simplified apps. At the same time challenges such as cyber fraud digital literacy gaps and infrastructural limitations persist. This study examines how digital payment systems influence consumer decision-making spending patterns and perceptions of trust and security. It argues that digital payment systems have reshaped India’s consumer economy by creating a culture of convenience transparency and inclusion but the long-term sustainability depends on strengthening security frameworks and bridging digital divides.